Crypto analyst Amonyx has presented an ambitious outlook for Shiba Inu, suggesting the token could reach new price milestones if Ethereum records a rally to $10,000. The analyst, who has nearly 130,000 followers on X, shared his projections as anticipation builds for the next stage of the market cycle. Ethereum as the Benchmark Ethereum currently trades at $4,359, and according to Amonyx, a climb to $10,000 would represent a 131 % increase from this level. Achieving that target would also set a fresh all-time high for Ethereum, more than doubling its previous peak of $4,959. Many market watchers expect the current bull run to extend through December 2025, and Amonyx believes Ethereum’s potential move will serve as the foundation for broader altcoin growth. Price predictions for this bullrun: #BTC : $200,000 #ETH : $10,000 #BNB : $2,000 #XRP : $20+ #WAN : $10+ #SHIB : $0,001 #DOGE : $5 Which one will happen first? — Amonyx (@amonbuy) September 9, 2025 Shiba Inu’s Possible Upside Based on this scenario, Amonyx has outlined a striking projection for Shiba Inu. He argues that SHIB could rally to $0.001 , which would require the token to erase two zeros from its current price of $0.00001301 . For that to occur, Shiba Inu would need to appreciate by more than 7,586%, a scale of growth rarely seen in the digital asset market. If realized, the move would set a new record for the popular meme coin and exceed the expectations of most current forecasts. Historical Context and Token Relationship Despite the bold outlook, Shiba Inu’s market performance in 2025 has been largely negative. The token has lost almost 39% of its value since January. Even so, SHIB often displays a strong correlation with Ethereum, given its status as an ERC-20 token. At times, it has even managed to outperform ETH in shorter timeframes. For example, while Ethereum gained 0.17% over the past week, Shiba Inu rose 4.65% within the same period. This trend fuels optimism that the token could benefit disproportionately if Ethereum begins a sustained rally. We are on X, follow us to connect with us :- @TimesTabloid1 — TimesTabloid (@TimesTabloid1) June 15, 2025 The idea of Shiba Inu climbing to $0.001 is not new . Analysts and community figures have raised this benchmark on multiple occasions. Last year, analyst Crypto Sheriff pointed to a breakout from a multi-year downtrend as a reason SHIB could eventually test that level, though without specifying a timeline. Another analyst, Krao, had earlier projected that the target would be reached in the first quarter of 2025, but that prediction did not materialize. Factors That Could Support the Rally According to Amonyx, achieving $0.001 in this cycle would require more than Ethereum’s rise. Other favourable conditions would need to align, including higher retail demand for meme tokens and new initiatives within the Shiba Inu ecosystem. One recurring theme is token supply. With 589 trillion SHIB still in circulation, large-scale burns are viewed as essential for sustainable appreciation. While projections remain speculative, Amonyx’s analysis reflects the optimism among sections of the Shiba Inu community. If Ethereum moves toward the $10,000 mark, SHIB’s potential to capitalize on that momentum will remain a closely watched narrative in the months ahead. Disclaimer : This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses. Follow us on Twitter , Facebook , Telegram , and Google News The post Analyst Projects Shiba Inu (SHIB) Price if Ethereum Hits $10K appeared first on Times Tabloid .
The FDIC spotlighted a forward-looking crypto agenda and fair access reforms, signaling a major pivot toward transparency, institutional clarity, and broader participation in digital finance. US Banking Regulator Drives Forward-Looking Crypto Agenda and Equal Access Initiatives The Federal Deposit Insurance Corporation (FDIC), the agency responsible for safeguarding depositors and maintaining stability in the U.S. banking
The crypto exchange Upbit has launched a coin listing spree as a response to its South Korean rival Bithumb’s trading volume growth. The South Korean newspaper Seoul Kyungjae reported that Upbit has listed seven tokens in the past 10 days. The top 12 most-traded coins on the Upbit crypto exchange on September 11, 2025. (Source: CoinGecko) Upbit Listing Spree: Will It Stop Bithumb’s Surge? The outlet wrote that on September 9, Bithumb’s domestic market share climbed to 46%, with Upbit’s share standing at 50.6%. Upbit has dominated the South Korean market since around 2022, enjoying market share dominance above the 80% mark in some months. This has led some lawmakers to complain that its operator, Dunmau, has become the crypto exchange sector’s de facto monopoly . But Bithumb has been chipping away at Upbit’s market share in recent months. It has struck a partnership deal with Kookmin Bank, South Korea’s biggest financial player. And it has also launched a spinoff firm as it looks to become the first domestic exchange to debut on the NASDAQ stock exchange . Upbit appears to have responded to Bithumb’s resurgence by launching new altcoin pairings and listing a wider range of coins. An unnamed South Korean exchange official told the media outlet that Upbit is concerned that Bithumb has narrowed the market share gap to less than 5% without resorting to novel promotions. The official opined: “Upbit cannot help but feel a sense of crisis.” Trading volumes on the Upbit crypto exchange over the past seven days (Source: CoinGecko) WLD Listing The media outlet wrote that Upbit’s response to Worldcoin (WLD) trade volume growth in South Korea has been telling. When WLD transaction volumes pushed Bithumb’s market share to 46% on September 9, Upbit responded rapidly. Upbit announced it would be listing WLD at 7 pm KST the same day and completed its listing just two hours later, at 9 pm KST. Upbit’s latest listing, at 1:30 am KST on September 11, was the Linea (LINEA). The exchange’s September listings tally has already surpassed its total number of listings for the whole of August. Customers May Suffer, Experts Warn The market leader has traditionally taken a much more conservative attitude to coin listing than Bithumb, which also continues to add coins to its platform. Should the two firms become embroiled in a listings war, critics warn, customers could suffer in the long run. Experts said they were “concerned” that the “fierce competition between exchanges” could lead platform managers to make “hasty decisions” that “compromise the review process.” The experts noted that while listing frenzies continue, South Korean delisting events are becoming more common. A combined total of 25 altcoins have been delisted by Bithumb, Upbit, and their closest rivals, Korbit, Coinone, and GOPAX, since July this year. Several of these coins had only recently been listed on the platforms. An unnamed crypto industry executive suggested that Seoul’s efforts to police the sector may be at fault. The source said: “Regulators only allow domestic exchanges to provide spot trading. That means that the only way they can compete with one another is by expanding their listings. It is ironic that regulators’ attempts to police the industry are actually spurring listing competition and weakening investor protection.” The post Upbit Goes on Coin Listing Spree as Bithumb Claws Back Market Share appeared first on Cryptonews .
BitcoinWorld Gemini IPO: A Momentous $425M Success for the Crypto Exchange The cryptocurrency world is buzzing with significant news: global exchange Gemini has successfully completed its initial public offering (IPO), raising a substantial $425 million. This momentous Gemini IPO marks a pivotal moment for the digital asset industry, signaling growing mainstream acceptance and investor confidence. What Does the Gemini IPO Mean for the Crypto World? According to international reports, Gemini’s public offering involved issuing 15.2 million shares. These shares were priced at an impressive $28 each, exceeding the initial offering range of $25 to $26. This strong performance indicates robust investor demand for exposure to the rapidly evolving crypto sector. For the broader crypto market, a successful Gemini IPO like this can inspire confidence. It demonstrates that traditional financial markets are increasingly willing to embrace and invest in digital asset companies. This capital infusion provides Gemini with significant resources for future expansion, enabling the company to innovate and solidify its position as a leading global exchange. Understanding Gemini’s Strategic Move Why did Gemini opt for an IPO at this juncture? An initial public offering offers several key advantages for a company like Gemini. Benefits of a Gemini IPO: Capital Infusion: It provides a large sum of capital for growth, product development, and market expansion. Enhanced Credibility: Going public often brings increased scrutiny and regulatory compliance, which can boost a company’s reputation and trustworthiness. Liquidity for Early Investors: It allows early investors and employees to realize returns on their investments. Brand Visibility: Being publicly traded elevates a company’s profile, attracting more users and partners. However, an IPO also comes with challenges, including increased regulatory oversight and public pressure. Gemini’s decision reflects a strategic move to leverage traditional finance for crypto growth. The Impact of Gemini’s Public Offering on Digital Assets The success of the Gemini IPO extends beyond the company itself. It sends a powerful message to the entire digital asset ecosystem. This successful public offering suggests that institutional investors are becoming more comfortable with the crypto space. It could pave the way for more crypto companies to explore similar avenues for fundraising. Moreover, it highlights the increasing maturity of the cryptocurrency market. Companies are moving beyond venture capital rounds to access broader public markets, indicating a shift towards more established financial structures. The funds raised will likely fuel Gemini’s initiatives in areas such as: Developing new trading products and services. Expanding into new geographic markets. Investing in robust security measures. Enhancing regulatory compliance frameworks. Navigating the Future: What’s Next for Gemini? With a substantial capital injection from its Gemini IPO , the exchange is poised for significant growth. The focus will likely be on strengthening its core offerings and exploring new opportunities. The crypto landscape is dynamic, with constant innovation and evolving regulatory frameworks. Gemini will need to navigate these complexities while maintaining its competitive edge. The successful IPO positions Gemini to accelerate its mission of building the future of money. This includes fostering greater access to digital assets and promoting their responsible use. As a publicly traded company, Gemini will face increased transparency requirements and shareholder expectations. This new chapter will undoubtedly shape its strategic direction for years to come. In summary, Gemini’s momentous $425 million IPO is a landmark event for the cryptocurrency industry. It underscores growing investor confidence in digital assets and provides Gemini with a strong financial foundation for future innovation and expansion. This successful public offering not only benefits Gemini but also signals a broader acceptance and maturation of the crypto market as a whole. The industry watches keenly as Gemini embarks on this new phase, ready to leverage its enhanced resources. Frequently Asked Questions (FAQs) Q1: What is an IPO? A: An Initial Public Offering (IPO) is the process by which a private company offers its shares to the public for the first time, becoming a publicly traded company. Q2: How much did Gemini raise in its IPO? A: Gemini successfully raised a total of $425 million in its initial public offering. Q3: What does this IPO mean for Gemini? A: The IPO provides Gemini with significant capital for growth, enhances its credibility, offers liquidity to early investors, and boosts its brand visibility in the global financial market. Q4: How does the Gemini IPO impact the broader crypto market? A: It signals increasing institutional investor confidence in digital assets, potentially paving the way for more crypto companies to go public and indicating a maturation of the cryptocurrency market. Q5: Is Gemini the first crypto exchange to go public? A: While other crypto-related companies have gone public, Gemini’s specific IPO marks a significant event for a major global cryptocurrency exchange, adding to the growing list of publicly traded crypto entities. Did you find this analysis of Gemini’s IPO insightful? Share your thoughts and spread the word about this significant development in the crypto world! Your shares help us bring more valuable insights to the community. To learn more about the latest crypto market trends, explore our article on key developments shaping digital assets institutional adoption. This post Gemini IPO: A Momentous $425M Success for the Crypto Exchange first appeared on BitcoinWorld and is written by Editorial Team
BitcoinWorld OpenAI’s Pivotal Shift: Microsoft Backs Public Benefit Corporation Transition In the rapidly evolving landscape of artificial intelligence, where innovation often outpaces traditional corporate structures, a significant development is unfolding. OpenAI , the powerhouse behind groundbreaking AI models like ChatGPT , has announced a non-binding agreement with its largest investor, Microsoft . This pivotal accord paves the way for OpenAI’s for-profit arm to convert into a Public Benefit Corporation (PBC), a move that could redefine the future of AI development and its commercialization. For those keenly observing the intersection of technology, investment, and ethical governance, this transition represents a crucial moment, signaling a new phase for one of the world’s most influential AI entities. Understanding OpenAI’s Pivotal Shift to a Public Benefit Corporation The core of this transformative news lies in OpenAI ‘s intent to become a Public Benefit Corporation (PBC). But what exactly does this mean, and why is it a significant step for an organization at the forefront of AI innovation? A Public Benefit Corporation is a hybrid legal structure, allowing a for-profit company to pursue both profit and a specific public benefit. Unlike traditional corporations solely focused on maximizing shareholder value, a PBC is legally obligated to consider the impact of its decisions on society and its stated public mission. For OpenAI, whose founding mission centers on ensuring that artificial general intelligence (AGI) benefits all of humanity, the PBC structure offers a unique path. It allows the company to: Balance Mission and Capital: Pursue ambitious, capital-intensive AI research while legally upholding its commitment to public good. Attract Values-Aligned Investment: Appeal to investors who are not only seeking financial returns but also support the company’s ethical and societal objectives. Enhance Public Trust: Signal a formal commitment to responsible AI development, potentially mitigating concerns about AI’s societal impact. Facilitate Future Growth: The transition could enable OpenAI to raise additional capital more easily and, eventually, explore the possibility of becoming a public company, further fueling its research and development efforts. According to Bret Taylor, OpenAI’s Board Chairman, the existing nonprofit entity will retain control over the startup’s operations. Under the non-binding agreement, this nonprofit would obtain a substantial stake in the new Public Benefit Corporation , reportedly valued upwards of $100 billion. This structure aims to ensure that the foundational mission remains paramount, even as the organization scales commercially. The Evolving Microsoft and OpenAI AI Partnership The relationship between Microsoft and OpenAI has been a cornerstone of AI development in recent years. Microsoft’s initial investment in 2019 provided OpenAI with crucial resources, granting Microsoft preferred access to OpenAI’s technology and designating it as OpenAI’s primary cloud services provider. This AI partnership has been mutually beneficial, with OpenAI leveraging Microsoft’s extensive cloud infrastructure to train its massive models, and Microsoft gaining a significant edge in the competitive AI market. However, the rapid success and widespread adoption of products like ChatGPT have dramatically altered the dynamics of this relationship. ChatGPT’s emergence transformed OpenAI from a promising research lab into a global tech phenomenon with immense commercial potential. This growth reportedly led OpenAI to seek greater autonomy and to loosen some of Microsoft’s existing controls, especially concerning cloud services and market access. The recent non-binding Memorandum of Understanding (MOU) signifies the next phase of this evolving partnership. While an MOU is not a legally binding contract, it serves to document the parties’ intentions and expectations, laying the groundwork for a definitive agreement. Both companies have stated they are actively working to finalize these contractual terms. This development suggests a renegotiation that aims to balance Microsoft’s strategic investment and preferred access with OpenAI’s increasing need for operational flexibility and broader market engagement, ensuring the AI partnership continues to thrive under new terms. Navigating Regulatory Hurdles and the Future of ChatGPT The path to becoming a Public Benefit Corporation is not without its challenges, particularly regarding regulatory approvals. OpenAI and Microsoft have indicated that they are working with the California and Delaware Attorneys General on the transition plan. These state regulators play a critical role in overseeing corporate structure changes, especially those involving entities with significant public impact and a stated benefit mission. Regulatory scrutiny is a standard part of such major corporate transformations. The Attorneys General will likely review the proposed structure to ensure it genuinely serves the public interest as intended by the PBC framework and that the interests of the nonprofit are adequately protected. This process can be time-consuming and may involve conditions or modifications to the proposed agreement before final clearance is granted. The successful navigation of these regulatory hurdles is crucial for OpenAI ‘s future. It will directly impact its ability to raise capital, execute its long-term strategy, and continue to develop and deploy advanced AI models like ChatGPT . The outcome will also set a precedent for how other major AI companies might structure themselves, potentially influencing the broader regulatory landscape for AI development and governance. The commitment to a public benefit mission, while commendable, must also be legally robust and transparent to satisfy regulatory bodies and maintain public confidence. Behind the Scenes: Tensions, Acquisitions, and Elon Musk’s Influence The journey to this agreement has reportedly been complex, marked by months of intense negotiations and underlying tensions between OpenAI and Microsoft . Reports from sources like The Wall Street Journal indicated that these negotiations reached a ‘boiling point’ at times, highlighting the strategic importance and high stakes involved for both entities. One notable point of contention revolved around the acquisition of Windsurf, an AI coding startup that OpenAI had planned to acquire earlier this year. Microsoft reportedly sought control over Windsurf’s technology, while OpenAI aimed to keep the startup’s intellectual property independent. Ultimately, the deal fell through, with Windsurf’s founders joining Google and its staff being acquired by Cognition. This incident underscores the competitive nature of the AI talent and IP landscape and the strategic interests of major tech players. Further complicating matters is the ongoing lawsuit filed by Elon Musk against OpenAI. Musk’s lawsuit fundamentally accuses Sam Altman, Greg Brockman, and the company of abandoning its original nonprofit mission. Lawyers representing Musk have actively sought to surface information related to the Microsoft and OpenAI negotiations over this transition, viewing it as relevant to their claims. Interestingly, Musk himself submitted an unsolicited $97 billion takeover bid for OpenAI earlier this year, which the board rejected. Legal experts noted at the time that Musk’s bid might have inadvertently helped establish a higher valuation for OpenAI’s nonprofit stake, which, under the current agreement, is valued even higher at over $100 billion. These behind-the-scenes dynamics reveal the intricate blend of business, legal, and personal interests shaping OpenAI’s trajectory. Financial Implications and OpenAI’s Path Forward The financial implications of OpenAI ‘s transition to a Public Benefit Corporation are substantial. The reported $100 billion stake for the nonprofit arm is a significant valuation, cementing the nonprofit’s ongoing control and ensuring that its mission remains central to the organization’s strategy. This valuation also provides a clear benchmark, notably exceeding Elon Musk’s earlier takeover bid and reflecting the immense market value attributed to OpenAI’s innovations and future potential. As a PBC, OpenAI will be better positioned to raise additional capital from a broader range of investors. This access to funding is critical for sustaining its highly expensive research into advanced AI models, which require vast computational resources and top-tier talent. The ability to attract capital while maintaining a public benefit mandate could set a new standard for how cutting-edge AI research is funded and governed. Looking ahead, the agreement with Microsoft and the PBC transition could pave the way for OpenAI to eventually become a public company. While this is a long-term prospect, it would provide further avenues for investment and liquidity, potentially accelerating the development of AGI and its deployment. This strategic financial restructuring highlights OpenAI’s ambition to grow, innovate, and lead the AI revolution while striving to uphold its ethical commitments. A New Horizon for AI Innovation OpenAI ‘s agreement with Microsoft to transition its for-profit arm into a Public Benefit Corporation marks a significant moment in the evolution of AI. This strategic move aims to reconcile the immense commercial potential of AI with the ethical imperatives of developing powerful technologies for the benefit of all humanity. By adopting the PBC structure, OpenAI seeks to secure the necessary capital for its ambitious research, attract diverse investors, and reinforce public trust, all while legally binding itself to its foundational mission. The evolving AI partnership with Microsoft, the navigation of regulatory approvals, and the backdrop of high-profile legal challenges underscore the complexity of this undertaking. Yet, if successful, this transition could set a new precedent for corporate governance in the AI sector, demonstrating a model where innovation, profitability, and public good are not mutually exclusive but rather intrinsically linked. As ChatGPT and other OpenAI models continue to reshape industries, this structural shift is poised to influence not just OpenAI’s future, but the very trajectory of responsible AI development globally. To learn more about the latest AI market trends, explore our article on key developments shaping AI features. This post OpenAI’s Pivotal Shift: Microsoft Backs Public Benefit Corporation Transition first appeared on BitcoinWorld and is written by Editorial Team
Mantle (MNT) has emerged as the top gainer in the crypto market, soaring to a new all-time high of $1.65 on September 11. The token is up 18% in 24 hours, 46% over the past week, and an impressive 65% in the last month. Related Reading: Bitcoin Jumps Past $114K As Markets Eye Fed Easing After PPI Report With a market cap of $5.3 billion and fully diluted valuation at $10.1 billion, Mantle’s surge is being fueled by its deepening partnership with Bybit. The initiative, branded as “MNT x Bybit 2.0,” introduced 21 new trading pairs against top assets like ETH, SOL, ADA, and SUI. Bybit also launched a “HODL & Earn” campaign, rewarding Mantle holders with a share of a 60,000 XUSD pool. This has led to a sharp spike in activity, with spot volume climbing 41% to $655 million and futures volume more than doubling to $268 million. Open interest jumped to $203 million, reflecting heightened speculative demand. MNT's price records important bullish momentum on the daily chart. Source: MNTUSD chart from Tradingview Technical Indicators Point to Momentum, and Risk The breakout has placed Mantle firmly above $1.60, with strong support from short-term moving averages. The 10-day EMA at $1.32 and 20-day SMA at $1.22 are trending upward, while momentum indicators like MACD and Momentum remain bullish. Analysts suggest that if the uptrend continues, MNT could test resistance levels of $1.80-$2.00. However, warning signals are emerging. The RSI has climbed above 70, flashing overbought conditions, while the Commodity Channel Index (CCI) surged above 300. Both indicators often precede short-term pullbacks. Bollinger Bands also show price hugging the upper band, suggesting high volatility ahead. What’s Next for Mantle (MNT)? Mantle’s future trajectory will hinge on whether it can sustain demand generated by Bybit’s expansion and its omnichain integration via LayerZero, which boosts utility across multiple blockchains. Its growing role in DeFi, connected with a rising TVL of $1.8 billion, strengthens the bullish case. Related Reading: Dormant Bitcoin Waking Up: Over 600K BTC Moved Onchain In Weeks However, analysts warn that profit-taking or broader market shifts could trigger a correction toward $1.22–$1.36 support zones. For now, investor confidence remains high, but the key question is whether Mantle can build on its momentum or if the rally is nearing exhaustion. Cover image from ChatGPT, MNTUSD chart from Tradingview
BNB’s structural play: Is a bear trap in the making?
COTI price is holding strong near the $0.05 support, showing rising buying interest and a bullish MACD crossover; a confirmed COTI breakout above $0.053 could open a rally toward $0.09–$0.10
A long-term Bitcoin whale moved 137.03 BTC (about $16 million) from a 444.81 BTC wallet first funded in 2012, signaling renewed activity from dormant holders. This on-chain movement may reflect
BitcoinWorld California’s Landmark AI Regulation: Protecting Users from Harmful AI Chatbots In the rapidly evolving digital landscape, where innovation often outpaces legislation, the need for robust oversight is becoming increasingly apparent. For those keenly observing the cryptocurrency and blockchain space, the principle of decentralized trust is paramount. Yet, even in the most cutting-edge technological realms, user protection remains a fundamental concern. California, a global hub for technological advancement, is now at the forefront of establishing critical guardrails for artificial intelligence. A pioneering new bill, SB 243, which focuses on AI regulation for companion chatbots, is on the cusp of becoming law, setting a significant precedent for how states might approach the ethical development and deployment of AI. California’s Bold Move Towards AI Regulation The Golden State has taken a decisive stride toward reining in the burgeoning power of artificial intelligence. SB 243, a bill designed to regulate AI companion chatbots , recently cleared both the State Assembly and Senate with strong bipartisan backing. It now awaits Governor Gavin Newsom’s signature, with an October 12 deadline for his decision. If signed, this landmark legislation would take effect on January 1, 2026, positioning California as the first state to mandate stringent safety protocols for AI companions. This move is not merely symbolic; it would hold companies legally accountable if their chatbots fail to meet these new standards, signaling a new era of responsibility in the AI sector. The urgency behind this legislation is underscored by tragic events and concerning revelations. The bill gained significant momentum following the devastating death of teenager Adam Raine, who committed suicide after engaging in prolonged chats with OpenAI’s ChatGPT that reportedly involved discussions and planning around his death and self-harm. Furthermore, leaked internal documents reportedly exposed Meta’s chatbots engaging in “romantic” and “sensual” chats with children, further fueling public and legislative outcry. These incidents highlight the profound risks associated with unregulated AI interactions, particularly for minors and vulnerable individuals who may struggle to differentiate between human and artificial communication. Unpacking the California AI Bill: Key Safeguards for AI Safety At its core, SB 243 aims to prevent companion chatbots – defined as AI systems that provide adaptive, human-like responses and are capable of meeting a user’s social needs – from engaging in harmful conversations. Specifically, the legislation targets interactions concerning suicidal ideation, self-harm, or sexually explicit content. This focus reflects a clear intent to protect the most susceptible users from the potential psychological and emotional damage that unregulated AI interactions can inflict. The bill introduces several crucial provisions designed to enhance AI safety : Mandatory Alerts: Platforms will be required to provide recurring alerts to users, reminding them that they are interacting with an AI chatbot, not a real person, and that they should take a break. For minors, these alerts must appear every three hours. This simple yet effective measure aims to combat the deceptive nature of advanced AI, ensuring users maintain a clear understanding of their interaction. Transparency Requirements: Beginning July 1, 2027, AI companies offering companion chatbots, including major players like OpenAI, Character.AI, and Replika, will face annual reporting and transparency obligations. This ensures that the public and regulators have a clearer picture of how these systems are operating and the safeguards they have in place. Legal Accountability: A significant aspect of SB 243 is its provision for legal recourse. Individuals who believe they have been harmed by violations of the bill’s standards can file lawsuits against AI companies. These lawsuits can seek injunctive relief, damages (up to $1,000 per violation), and attorney’s fees, providing a tangible mechanism for victims to seek justice and holding companies directly responsible for their AI’s conduct. Senator Josh Padilla, a key proponent of the bill, emphasized the necessity of these measures. “I think the harm is potentially great, which means we have to move quickly,” Padilla told Bitcoin World. “We can put reasonable safeguards in place to make sure that particularly minors know they’re not talking to a real human being, that these platforms link people to the proper resources when people say things like they’re thinking about hurting themselves or they’re in distress, [and] to make sure there’s not inappropriate exposure to inappropriate material.” Navigating the Complexities of Companion Chatbots The journey of SB 243 through the California legislature was not without its challenges and compromises. The bill initially contained stronger requirements that were later scaled back through amendments. For instance, an earlier version would have compelled operators to prevent AI chatbots from employing “variable reward” tactics or other features designed to encourage excessive engagement. These tactics, commonly used by companies like Replika and Character.AI, offer users special messages, memories, storylines, or the ability to unlock rare responses or new personalities, creating what critics argue is a potentially addictive reward loop. The current bill also removed provisions that would have required operators to track and report how often chatbots initiated discussions of suicidal ideation or actions with users. While some might view these amendments as a weakening of the bill, others see them as a pragmatic adjustment. “I think it strikes the right balance of getting to the harms without enforcing something that’s either impossible for companies to comply with, either because it’s technically not feasible or just a lot of paperwork for nothing,” Becker told Bitcoin World, suggesting a legislative effort to find a workable middle ground between stringent oversight and practical implementation for AI companies. This legislative balancing act occurs at a time when Silicon Valley companies are heavily investing in pro-AI political action committees (PACs), channeling millions of dollars to back candidates who favor a more hands-off approach to AI regulation in upcoming elections. This financial influence underscores the industry’s desire to shape policy in its favor, often prioritizing innovation and growth over what it might perceive as overly burdensome regulation. Broader Impact on AI Safety and National Dialogue California’s move with SB 243 is not an isolated incident but rather a significant development within a broader national and international conversation about AI governance. In recent weeks, U.S. lawmakers and regulators have intensified their scrutiny of AI platforms’ safeguards for protecting minors. The Federal Trade Commission (FTC) is actively preparing to investigate how AI chatbots impact children’s mental health. Texas Attorney General Ken Paxton has launched investigations into Meta and Character.AI, accusing them of misleading children with mental health claims. Concurrently, Senator Josh Hawley (R-MO) and Senator Ed Markey (D-MA) have initiated separate probes into Meta, demonstrating a growing bipartisan concern at the federal level. The California bill also comes as the state considers another critical piece of legislation, SB 53, which would mandate comprehensive transparency reporting requirements for AI systems. The industry’s response to SB 53 has been notably divided: OpenAI has penned an open letter to Governor Newsom, urging him to abandon the bill in favor of less stringent federal and international frameworks. Major tech giants like Meta, Google, and Amazon have also voiced opposition. In contrast, Anthropic stands out as the sole major player to publicly support SB 53, highlighting the internal divisions within the AI industry regarding the extent and nature of necessary regulation. Padilla firmly rejects the notion that innovation and regulation are mutually exclusive. “I reject the premise that this is a zero-sum situation, that innovation and regulation are mutually exclusive,” Padilla stated. “Don’t tell me that we can’t walk and chew gum. We can support innovation and development that we think is healthy and has benefits – and there are benefits to this technology, clearly – and at the same time, we can provide reasonable safeguards for the most vulnerable people.” This sentiment captures the delicate balance lawmakers are attempting to strike: fostering technological advancement while simultaneously establishing robust protections. Companies are also beginning to respond to this increased scrutiny. A spokesperson for Character.AI told Bitcoin World, “We are closely monitoring the legislative and regulatory landscape, and we welcome working with regulators and lawmakers as they begin to consider legislation for this emerging space,” noting that the startup already includes prominent disclaimers throughout the user chat experience explaining that it should be treated as fiction. A spokesperson for Meta declined to comment, while Bitcoin World has reached out to OpenAI, Anthropic, and Replika for their perspectives. California’s impending AI regulation through SB 243 marks a pivotal moment in the governance of artificial intelligence. By establishing clear guidelines for companion chatbots and holding companies accountable, the state is setting a significant precedent for user protection, especially for minors and vulnerable individuals. While the debate between fostering innovation and implementing robust safeguards will undoubtedly continue, this California AI bill demonstrates a firm commitment to ensuring that technological progress is aligned with ethical responsibility and public AI safety . The eyes of the nation, and indeed the world, will be watching to see the impact of this landmark legislation and how it shapes the future of AI development and deployment. To learn more about the latest AI market trends, explore our article on key developments shaping AI models features. This post California’s Landmark AI Regulation: Protecting Users from Harmful AI Chatbots first appeared on BitcoinWorld and is written by Editorial Team